Dowson Toys, Ltd, produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established the following standards for the Maze toy: Direct materials: 7 microns per toy at $0.33 per micron Direct labor: 1.2 hours per toy at $6.50 per hour During July, the company produced 4,600 Maze toys. The toy's production data for the month are as follows: Direct materials: 77,000 microns were purchased at a cost of $0.30 per micron. 36,750 of these microns were still In Inventory at the end of the month. Direct labor. 5,920 direct labor-hours were worked at a cost of $4,440. Required: 1. Compute the following variances for July: (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round final answer to the nearest whole dollar amount.) a. The materials price and quantity variances. b. The labor rate and efficiency variances. 1a Material price variance Material quantity variance Labor rate variance Labor efficiency variance
Dowson Toys, Ltd, produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established the following standards for the Maze toy: Direct materials: 7 microns per toy at $0.33 per micron Direct labor: 1.2 hours per toy at $6.50 per hour During July, the company produced 4,600 Maze toys. The toy's production data for the month are as follows: Direct materials: 77,000 microns were purchased at a cost of $0.30 per micron. 36,750 of these microns were still In Inventory at the end of the month. Direct labor. 5,920 direct labor-hours were worked at a cost of $4,440. Required: 1. Compute the following variances for July: (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round final answer to the nearest whole dollar amount.) a. The materials price and quantity variances. b. The labor rate and efficiency variances. 1a Material price variance Material quantity variance Labor rate variance Labor efficiency variance
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 11PB: Use the following standard cost card for 1 gallon of ice cream to answer the questions. Actual...
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